Volume 1
A Closer Look at The Phelan Family
Lan Phelan
Volume 1
page 12
Your Commercial Vehicle Headquarters Construction & Industrial
F250 Marketing Reps and Light Delivery Ford Fiesta
28 MPG City 36 MPG Highway
Visit Us Today!
F350 Industry Leading Commercial Van Ford Transit
Customize Your Transit to fit your commercial van needs.
SourLakeFord.com 175 Texas 105 in Sour Lake (409) 287-3583
A
departments
As soon as the first Southeast Texas commercial realtor asked us for a magazine devoted to their industry, we were intrigued. This magazine could be a platform for all of the issues that inspire us: 1. Promoting Southeast Texas as a desirable market for new commercial, retail, and industrial development. 2. Creating a dialogue between groups investing in The Golden Triangle as a forum to multiply their efforts. 3. Create an area for successful commercial developer to share success stories and tips to encourage those with ideas for the next great development. Most importantly we want this to be your magazine – the property owners, the commercial realtors, management companies, those looking to buy or lease in Southeast Texas, and the hundreds of businesses that support commercial property development – general contractors, plumbers, electricians, IT specialists, alarm and security firms, business hotels, commercial landscapers, AC contractors, commercial vehicle and equipment sales, office supply and equipment companies, and all of you who make this sector strong and vibrant for Southeast Texas. We’ll keep an open dialogue and look forward to sharing your stories – and successes- in the magazine. To start, we’ve had some commercial realtors express interest in a monthly informal meeting to compare notes, share buzz, and identify areas of common interest and partnership. The idea would be to gather at 4:30 once a month for a roundtable conference lasting about an hour. Individuals with common interests or projects would be able to continue their dialogue after the meeting. If you’d be interested in something like this call, EM, or post your notes on our Southeast Texas Commercial Real Estate Facebook page. For all of us in the center or at the periphery of the commercial real estate sector in Southeast Texas, life will be easier when new developers say, “We absolutely need a presence in The Golden Triangle”.
around SETX
Port Arthur Economic Forecast What does the Future Hold
SETX Commerical Real Estate: The Players The Phelan’s
SETX Spotlight Southwest Building Systems
trending Commercial Landscaping Trends by US Lawns
Innovative Air Solutions Robert Currie
Advantages of Going Green Why Green & Clean Go Together
shop talk
Each issue of Southeast Texas Commercial Real Estate will be a baby step towards fostering that future.
Maximizing SETX Commercial Real Estate Value Manage Your Properties as Though They’re Always for Sale
Daryl Fant, Publisher Southeast Texas Commercial Real Estate (512) 567-8068 SETXCommercialRealEstate@gmail.com
Catering as a Thank-you for A Closed Business Deal Chef Chuck Harris Explains
3
T
Port Arthur Commercial Forecast 2015 To kick off the New Year, we sat down with Port Arthur Chamber President Bill McCoy to talk about forecasting the Mid County economy for 2015 and beyond. According to Bill, the biggest new factor in the market is LNG. Many Southeast Texas businesses have lived the feast and famine cycle of the Southeast Texas oil industry. The highs are exhilarating, but the lows can cripple a small or even mid-sized business. First – most of the lows affect businesses tied to exploration and drilling. McCoy pointed out that the refineries themselves make money whether oil is at $100 a barrel or $50. We do have a lot of businesses in the exploration and drilling sectors, and those have been greatly affected by changes in the price of oil. When the price of oil is up, these companies move a tremendous amount of money through the economy – they hire lots of people, they buy lots of company (and personal) trucks, and they build sprawling complexes where they can fabricate or store mats and drilling equipment, or whatever they need for their particular specialty. When the price of the oil is down for too long, they have big layoffs, they stop buying new vehicles, and their complexes are locked up for sale or lease during the next uptick. LNG will provide the Mid County economy with a buffer during what has been a famine cycle in the past. The beauty of our two new “Mega” LNG terminals is that they are set up to import or export with equal ease. When the price swings to make importing more attractive, Cheniere and Golden Pass LNG can bring in enormous quantities of LNG for the domestic market. If the price swings the other way and it is economically more attractive to export LNG, the plants can flip the switch and start exporting at an equal rate. What is more important than whether we’re exporting or importing LNG at any given time is the stability of the jobs – and the resulting stability of their dollars. Stability at the plants whether LNG is selling high or low, translates into job stability which make it easier for workers to commit to buying homes, shiny new Ford trucks and Mustangs, furniture, and the other cogs that keep the Mid County community humming. More stable income for workers makes them comfortable treating the family to new outfits at Central Mall, splurging on a nice dinner at The Beau Reve or La Suprema, or buying a boat to fully explore the world class fishing offered by Sabine Pass, Lake Sam Rayburn, and Toledo Bend. To Advertise Call Daryl Fant 512.567.8068 4
The stability of the plants will also mean a sustained need for all of the support businesses that are needed to keep a plant humming: plumbers, electricians, caterers, and industrial construction firms for upgrades and expansions. It’s always wonderful when our local contractors are working – all of that money stays in the local economy. When these businesses are comfortable looking at catering vans, plumbing trucks, private school tuition, and hiring more employees it is a win for the whole community. Our local economy will always have a blessing from the oil industry and refineries. They are the keystones that hold the economy together and we are grateful for them. Think of LNG as the cousin with a nice well paying middle class job – maybe not as flashy as the oil industry during a boom, but you can always depend on them when other market sectors get tough. Are there ways your business can grow by serving the LNG sector? Both Cheniere and Golden Pass LNG have made a sincere effort to dialogue with Southeast Texas owned businesses- and to hire employees from within our communities. Find out more about these plants and get a feel for how they (and their workforce) can be part of your growth in 2015 and beyond: Cheniere LNG Golden Pass LNG: 9243 Gulf Beach Hwy, Cameron, LA 70631 3752 S Gulfway Dr, Sabine Pass, TX 77655 (337) 569-7700 (409) 971-4200 Cheniere.com/LNG_terminals GoldenPassTerminal.com There is more big news coming for Port Arthur and Mid County and we’ll start tackling it with the March issue of Southeast Texas Commercial Real Estate.
The Advantages of Going Green and Other Reasons Why Green and Clean Go Together An interview with Zachary Hamilton, Cofounder of Simply Citrus Zach, what caused you to get
Poor indoor air quality can cause a variety of worker illnesses and cause workers to be less productive. Indoor air quality consistently ranks among the top five environmental risks to public health. Cutting down on the amount of hazardous chemicals used reduces the potential for spills, accidents, and potential liability claims. Green cleaning allows our clients the opportunity to do something for themselves, their workers, and to project a desirable environmental image in their community.
interested in a green cleaning company?
What Is Green Cleaning?
Green cleaning is the efficient and effective use of cleaning practices and products that protect human health and the environment.
What the
Bottom Line? Business owners need to know how a paradigm shift such as “going green” affects the bottom line. Contracting with a green cleaning company such as ours and integrating better practices into your everyday working environment helps to create a wider understanding of “the bottom line.” Many business owners understand the bottom line to be profit only. Green cleaning will save most companies noticeably over time, but that is just one component. Our company encourages our customers to consider sharing our commitment to a bottom line of people, planet, and profit. You’re not only saving money immediately, but you are also increasing employee productivity and limiting your corporate liability.
6
What Are the Benefits?
Green cleaning is not only good for your working environment; it increases workplace health and safety. Using a green cleaning program such as ours helps to improve indoor air quality, which, in turn, leads to fewer employee sick days and higher productivity. Green cleaning focuses on keeping dirt and soil out and on preventive maintenance. Green cleaning can lower overall cleaning and maintenance costs. Employees like to work in buildings where the owners and managers show concern for their health and wellbeing. Last, but not least, by implementing green cleaning with other green features such as energy efficient lighting, you can increase your building’s value to potential buyers and tenants.
What Is the Program?
Because we’re committed to protecting human health and the environment, we’ve developed a complete green cleaning program to help our clients maintain a healthy working environment. Our green cleaning program incorporates safer cleaning methods, less toxic cleaning products, more efficient cleaning equipment, packaging that has less impact on the environment, and recycled paper supplies. First, we use microfiber cloths to keep dust from becoming airborne in your building. Second, we use microfiber mops and color coded cloths that use less water and chemicals, and help prevent cross contamination. Third, we use cleaning solutions that meet or exceed the standards set by Green Seal (greenseal.org). Fourth, we use vacuums that have HEPA filters to prevent dust and other contaminants from reentering the air.
We’ve asked you lots of questions today – what are questions your potential clients typically ask you? Q. Will it be expensive to switch to green cleaning? A. No, the products used are no more expensive than traditional cleaners. Q. Do we have to throw away the current chemicals we have on hand? A. No, we encourage you to use up the supplies and products you have and transition to a green cleaning program. Throwing away large amounts of chemicals at once has its own impacts – environmental and financial. Q. Besides using different cleaning chemicals, what is involved in green cleaning? A. In our green cleaning program we train our employees to remove dirt and soil, and not just spread it around or make it airborne. We use products that are not only “green”, but are concentrated and use less packaging for reduced environmental impact. We also look at ways to keep soil out of buildings, such as more walk off mats and deeper cleaning at entryways. Additionally, we may suggest more frequent maintenance such as vacuuming so that the needed frequency for deep cleaning (i.e. carpet cleaning), is reduced.
If our readers would like to evaluate going green, how can they schedule a consultation? Call 409.730.9399 or visit SimplyCitrus.us to schedule a walk through and evaluation. To Advertise Call Daryl Fant 512.567.8068
Maximizing SETX Commercial Real Estate Value Manage Your Properties as Though They’re Always By Lee Y. Wheeler, III, CCIM, President of NAI Wheeler
FOR SALE
It’s a great time to sell or lease commercial real estate in Southeast Texas. Activity is up significantly with sales and leases being completed daily by our local commercial Realtors®. The following factors are driving the market: • There is an enormous amount of institutional capital in our region that’s been earmarked for commercial real estate investment. • Capitalization rates* in most areas are of the Golden Triangle are relatively low, which reduces investment risk. • The IRS continues to permit 1031 exchanges – a means of swapping properties among multiple parties which greatly expands flexibility and most importantly is a excellent tax deferment tool for real estate investors. Taken together, these factors make our local conditions extraordinary. *Capitalization Rates: the ratio of net operating income to capital cost. What steps should would-be sellers take to maximize their property’s sales value? The number one piece of advice I can offer is don’t wait until you’re ready to sell to prep your property. The Basics of Valuation You can’t wait until it’s time to sell to address the drivers of property valuation. You need to proactively optimize individual property and overall portfolio value at all times. Start with the basics. Location matters. Overall architectural desirability and property condition matters. The first step in ongoing property and portfolio optimization is to make sound decisions in property acquisition and ongoing maintenance. Proactive maintenance and upgrades are particularly critical, as you don’t want to create a reason for a valued tenant not to renew- most SETX Commercial Realtors agree, it is easier to keep existing tenants happy than it is to recruit new tenants. Continuously evaluate how a property is being financed. Savvy investors are in regular communication with a sophisticated mortgage expert to conduct quarterly or semiannual reviews of property financing. Even minor improvements to financing can significantly improve cash flow and a property’s value to your portfolio. The one caveat here is to be aware of potential covenants, such as a pre-payment penalty, that might be triggered in a sale. If you’re interested in selling, first look carefully at your financing terms – or hold off on refinancing. Becki Pitre, the commercial property manager at NAI Wheeler in Beaumont, states that, “refinancing to improve the terms of your loan can provide a boost to the cash flow of a property if done correctly.” Pitre went on to say, “Some owners have even pulled cash out of a refinance to utilize for improvements and/or to purchase another property. Great care must be given to this process to ensure you do not set yourself up for failure down the road.”
8
Retain Those Tenants Owners need to keep their buildings occupied. An empty unit is lost revenue. The loss of any tenant can lead to significant expenses including lost rental income, new tenant build-out allowances, brokerage commissions, and more. An empty unit can even affect how your other tenants feel about the property - “Am I in a development that is growing or dying?”. In general, higher renewal rates translate into more secure cash flow and higher valuations. One of the most important steps to optimizing the value of any CRE portfolio is to build and maintain a robust tenant retention program.
Key tenant retention components that have worked in Southeast Texas Identify “Most Valuable” Tenants. Some tenants are just more valuable than others. Sometimes it is their sheer size in relation to the rest of the portfolio. Their failure to renew represents too great a risk to cash flow and value. It could be that they are less cost sensitive than other potential tenants– content to pay a premium for a well maintained space in a great location. Theirs could be a marquee name, aiding in attraction and retention of other desirable tenants. Regardless of the reasoning, CRE managers need to understand the relative value of their tenants and to allocate retention efforts and resources accordingly. Conduct Ongoing Relationship Assessments (and efforts!). Property managers should conduct ongoing assessments of the state of all tenants with a focus on their most valuable, tenant relationships. Ongoing communication with key tenants should be a given. The more valuable the tenant, the more intimate the interaction should be. Address issues proactively. Prevent small issues from growing into larger concerns that could lead to non-renewal. With small or distant tenants, property managers can use tools such as customer surveys to get a sense of conditions and what might be done to improve satisfaction and boost renewal rates. The bottom line is that if you wait until it is time to renew a lease, you’ve missed the chance to develop a relationship that makes each business eager to renew. Ongoing Renewal. Be equally proactive in renewing leases and rental agreements. Too often, overworked property managers wait until 180 days or even less prior to the end of the contract term before seeking renewal. Formal renewal efforts should begin at least 12 months ahead of contract term. For key tenants, two years is common. The more valuable the tenant, the earlier you’ll want to begin securing their renewal. The earlier the process begins, the more likely it is that the property manager can identify potential renewal barriers and overcome in time to secure a renewal. Proactive, Ongoing, Disciplined It is a seller’s market across most of the nation’s major CRE segments. Southeast Texas is nearing that point as momentum continues to accelerate. Some SETX sectors have already taken off. Take full advantage of the market and investor demand for quality properties. To achieve top valuations for your investment, it is important to deploy an ongoing, proactive and disciplined approach. The time to start is now.
To Advertise Call Daryl Fant 512.567.8068
Preparing Your SETX COMMERCIAL PROPERTY for Spring Maintaining your curb appeal in Southeast Texas can be a challenge. Your lawn and gardens face long brutally hot summers and long, gray, wet winters. The right commercial landscaper will have the knowledge and vision to keep your property looking “move in ready” year round. Today we’re talking with Byron Jacquette of US Lawns, who is passionate about commercial landscaping.
Q.
Byron, we’re having a real winter this year. January has been cold and wet with only occasional glimpses of full sunlight. What are you focused on right now?
A.
With all of the rain, we’ve helped a number of new clients with their drainage – water logged lawns with mud puddles aren’t something your prospective tenants want to see. We are making sure our clients lawns and gardens drain nicely. We’re also putting in lots of seasonal plants and flowers. Many people avoid planting in the winter, but there are lots of beautiful flowers and ornamental plants that can handle Southeast Texas winters just fine. Our clients have a nice pop of seasonal color all year round so that their properties really stand out.
A.
Q.
What are some of the services you offer commercial property managers and owners?
A.
At US Lawns, we provide full service landscape management. Once we document your expectations, we take over and proactively manage your property so you don’t have to call us and tell us the grass is getting long or the palm trees need to be trimmed. We work hard to stay one step ahead of your needs. Our services include: • Seasonal Color Design & Installation • Fertilization & Pest Control • Irrigation Management • Custom Select Services to meet any client’s special needs
Q. A.
What kind of facilities do you service?
We work hand in hand with your commercial realtors and property managers- the kinds of properties they are interested in are the ones we service. We service any kind of commercial property including: •Apartment Communities Retail & Office Parks • Home Owners Associations •Hotels & Resorts • Healthcare Facilities •Credit Unions and Banks • Restaurants •Industrial Parks • Municipalities • Assisted Living Facilities
Q.
Where can our readers see your work? If you’re grabbing lunch in Beaumont, swing by Schlotzsky’s. That’s one of the restaurants we service. If you have people coming into town for a meeting and they’re staying at the Holiday Inn Beaumont Plaza, that is one of the properties we landscape- don’t miss the new flowers in the atrium. If you catch a cold, swing into Walgreen’s; we serve all of their locations in the Golden Triangle.
10
To Advertise Call Daryl Fant 512.567.8068
Q.
What’s the secret to keeping clients happy long-term?
A.
Be proactive- don’t wait for a “problem” to arise. Maintain your client’s lawn and landscaping year round, so it always looks like they just got it ready to show a prospective buyer or tenant. Keep professional crews – they represent your company every day. Perform each job like it is an important job interview. If you take care of other people’s property like it was yours, they’ll stay with you a long time.
Our logo says it all, “Your Turf. Our Lawn”. If you’re looking for a commercial landscaper to deliver curb appeal 52 weeks a year, contact US Lawns.
US Lawns Beaumont
Byron Jacquette 409.678.2166 or GM Valory Dunn at 409.499.1781 E-mail at byron.jacquette@uslawns.net USLawns.com
Southeast Texas Commercial Real Estate The Players
The Phelan Family
If you’re in the Southeast Texas Commercial Real Estate Market long enough, you’ll run into the key players over and over. The more you know about potential allies in the field, the better chance you have of finding ways to take your relationship to the next level. Today, we’re looking at one of the founding families of SETX Commercial Real Estate, the Phelans. The Phelan family today works as kind of a loose confederation under the name Phelan Investments. Some projects are worked on individually and on others the family moves forward as a team. Some of our readers have placed tenants in Phelan retail
. d v l B lan
centers. Other readers will have been general or subcontractors on some of the Phelans retail centers or build to suit projects.
Today we are offering a little history – and a glimpse of the future. We spent some time with Lan Phelan at the Phelan
e h P
investments office – which interestingly is on Calder. The Phelans trace their commercial real estate heritage to their great grandfather John Henry Phelan senior. He had a vision of what Beaumont would become, how it would grow, and he strategically accumulated vast tracts of lands to help ensure his family would have resources that would continue to grow in value from generation to generation. His legacy includes the 2700 acre Willow Creek development. For simplicity’s sake, let’s call it everything from Brentwood Country Club to Ford Park. Succeeding generations of Phelans forged their own legacies in the Golden Triangle commercial real estate scene.
AM “Mickey” Lan’s father, Michael, hisMarket Uncle Harry, his Uncle Patrick helped guide the you’re inGrandfather the Southeast TexasPhelan, Commercial Real Estate longand enough, you’ll runhave intoallthe y playerscompany. over and over. you know about potential in the field, thejoined better Today the The fourthmore generation of Phelan’s includes Lan, allies Dade, and Mark Phelan bychance Pat Phelan’s son-inyou have of finding ways to take your relationship to the next level. law Eric Meadows. One advantage of a commercial real estate enterprise that has evolved over four generations is the
wealth of and insight available to each new player. they’ve never slowed down enough ay, we’re looking at experience one of the founding families of SETX Commercial RealWhile Estate, the Phelans. The Phelan family to create a mission Lan said thatunder each the member the family is taught,Some “Timesprojects will notare always be good y works as kind ofstatement, a loose confederation nameofPhelan Investments. worked on but if you have
positioned appropriately thereas willa be opportunities to expand even in ina tough real vidually and on othersyourself the family moves forward team. Some of our readersyour haveholdings placed tenants Phelancommercial retail market”. ers. Otherestate readers will have been general or subcontractors on some of the Phelans retail centers or build to suit
ects.
The family is taught to plan strategically for factors including managing debt load and having reserves to take advan-
of abargains when– they The family has some a long-term strategy for developing their own projects, but ay we are tages offering little history and abecome glimpseavailable. of the future. We spent time with Lan Phelan at the Phelan the philosophy passed down byCalder. their parents, grandparents, andcommercial great grandfather hasheritage positioned them to acquire about stments office – which interestingly is on The Phelans trace their real estate to their
half of theirHenry portfolio by purchasing projects fromofother deals were Being to move at grandfather John Phelan senior. He had a vision whatdevelopers Beaumont when wouldthe become, how itright. would grow,positioned and when a project isvast right has of also helped them grow his theirfamily portfolio beyond Goldenthat Triangle other Texas markets trategically accumulated tracts lands to help ensure would have The resources would into continue to
far away as Arkansas. One the factors many are Willow watching is the impact of LNG w in value and fromasgeneration to generation. His of legacy includes the people 2700 acre Creek development. Forand petroleum construction. Phelansfrom haveBrentwood noticed that a percentage of workers plicity’s sake, let’s call itThe everything Country Club to Ford Park. brought in for each project stay and have gradually
ceeding 12 generations of Phelans forged their own legacies in the Golden Triangle commercial real estate scene.
raised the skill level and income potential of our local workforce, a win for everyone in the community. Lan Phelan also credits local banks for helping provide support for local commercial development. The family has seen a lot of interest in build to suit projects like the Daltile Building and Hydrotex complex on Cardinal Drive. These will continue to play a role in their activities in the years to come. Currently, the family is watching the trickle down effects of lower oil prices and projecting when interest rates will start to move again. Collectively, Lan and his generation are working to ensure the Phelan family is positioned to welcome their next generation to the ranks of Southeast Texas commercial real estate professionals.
raised the skill level and income potential of our local workforce, a win for everyone in the community. Lan Phelan also credits l
helping provide support for local commercial development. The family has seen a lot of interest in build to suit projects like the D and Hydrotex complex on Cardinal Drive. These will continue to play a role in their activities in the years to come.
Currently, the family is watching the trickle down effects of lower oil prices and projecting when interest rates will start to move a
tively, Lan and his generation are working to ensure the Phelan family is positioned to welcome their next generation to the rank east Texas commercial real estate professionals.
Eric Meadows, Mark Phelan, Dade Phelan, Lan Phelan
Advertise with Us
Daryl Fant (512) 567-8068 SETXCommercialRealEstate@gmail.com
13
S o u t h e a s t
T e x a s
Subcontractor Spotlight Southwest Building Systems
When you’re investing in commercial property, it is essential to have some “go to” subcontractors. If you have the right network, they will make your life easier. Today we’re shining a spotlight on Southwest Building Systems (SBS). SBS is a family owned business that has been grown by three generations of the Thornhill family. They are widely known for security and fire alarm systems, but like many local subcontractors they have a lot more to offer. Today the face of the company is David Thornhill. David is a big believer in locally owned Southeast Texas businesses working together. He is a common fixture at local Chamber of Commerce and BBB meetings, where he takes enjoyment from pairing local companies together. He is also an active member of the Southeast Texas Networkers BNI Chapter (Business Network International), serving as their Education Coordinator. We were able to spend a few minutes with David getting a better idea of what Southwest Building Systems has to offer the SETX commercial real estate community.
Q. David, many of our readers already know
SBS for your security and fire alarm systems. What are some of the other services you can assist them with?
A. Whether you’re building a new facility or
retrofitting a property to meet your needs, I believe SBS has a lot to offer. We do a great job with intercoms. In the world we live in, intercoms have become a valuable tool for everyone from industrial facilities to small churches. We offer professional quality sound whether you’re building a new high school or college stadium or just want your warehouse guys to be able to listen to great music while they work (check out the system we put in for Modica Brothers in Silsbee- those guys are jamming). We can do great AV systems for video conferencing, professional presentations, or closed circuit TV. We also do well with mass notification systems, and we just wrapped up a big mass notification project for Mead Westvaco.
Q. For those who haven’t installed a mass
notification system, can you tell us more about what they are and how they can be beneficial?
A. A mass notification system is one of the
services we offer that can literally save lives. We don’t believe in scaring you, but we do believe in informing you. On the simple side, let’s say you have a midsized industrial services facility in mid county and we get a rough ice storm. Your mass notification system can tell your workers what you need them to know – stay home today, come into the office like normal, or “Exxon needs us to repair damage from the storm, assemble at …. and we’ll go in to the jobsite together”. Your mass notification system can reach people by phone, EM, overhead speaker (on-site), and text.
S o u t h w e s t
building systems Q. Thanks for all of your time today David. We will look forward to catching up with you again
soon. Do you have any final words for our readers on how to become a “go to” subcontractor in Southeast Texas?
A.
For each of us, the way we do each job reflects in a lot of other areas. For me, our business is a family owned business. I am carrying on the work my father started and preparing something to pass on to my son and I’d love for my grandchildren to take over one day. I want to honor the reputation my father built and to pass on a solid reputation to the next generation. I’m a local guy. People see me around Beaumont and Silsbee and at church in Lumberton. Every minute I’m working, I’m dedicated to doing the right thing, so I can always reflect the right kind of light on my co-workers, family, and community. We make mistakes, but we own them and fix them right away. All my guys know that they’re never going to get in trouble with me for fixing a problem. When people see our logo, I want them to say, “Those guys stand behind they’re work. I’d definitely hire SBS again”.
Do you have a project that will need a fire alarm, security system, professional sound or video, or a mass notification system?
Southwest Building Systems Office Phone: (409) 385-3971 E-mail: contact@sbstx.net Address: 1530 Hwy 327 W Silsbee, TX 77656-5310
To Advertise Call Daryl Fant 512.567.8068
15
Building Southeast Texas
GOSS
Building Incorporated
When you find the perfect piece of land for your next project, somebody has to build it. Each month we’ll look at the contractors who are “Building Southeast Texas” one school, restaurant, church, hotel, or industrial facility at a time.
Today we’re looking at Goss Building Inc. Owner Tony Goss has a passion for design build projects that will stand the test of time and takes pride in bringing his buildings in on budget – and on time. When you’re looking for a general contractor or design build firm, it can be nice to examine their body of work. Blueprints and bids tell one side of a story, but a completed building can often tell the rest of the tale. Goss Building has an extensive resume across the Southeast Texas landscape. A short drive from anywhere in the Golden Triangle can give you the chance to explore some of Goss Building’s projects: • Port of Beaumont Office • Vidor High School Gymnasium • American Valve Offices and Conference Building • D’Vine Wines (design build) • Our Lady of Victory Church • Coldwell Banker Acadian Courts • Rosenberg Civic Center • Entergy Huntsville • Evergreen Tank (design build) • Gulfco Equipment (design build) • Pleasant Green Baptist Church (design build) • McFaddin Ward House Visitor Center • St. Mary Hospital Birthing Unit (design build) • St. Elizabeth Hospital Pediatrics Wing Their projects show an ability to deliver for a wide range of clients- commercial, education, medical, municipal and government, and the church community. The firm is a member of The Associated General Contractors Southeast Texas Chapter and of the BBB. Goss Building is one of the great Southeast Texas contractors who are building Southeast Texas, one project at a time. If you’re looking for a general contractor or design build firm for your next project: Goss Building Incorporated 2455 West Cardinal Drive Beaumont, Texas 77705 Office: 409-842-4988 Toll-Free: 800-458-0648 GossBuilding.com
To Advertise Call Daryl Fant 512.567.8068
NAI Wheeler
Property Management
Because NAI Wheeler is locally owned and operated, our property management team offers a unique perspective, with intimate knowledge and local expertise for each property type: Office, Industrial, Retail, Investment, Land, or specialty practices: Logistics, Medical or Multifamily and SFR. Our property management services are tailored to meet each owner’s individual goals, and designed to maximize the value of your property assets. With clients ranging from institutions and pension fund advisors to private developers and individuals with needs as diverse as their businesses. In every case, we provide custom solutions focused on your business objectives and bottom line. Working closely with each property owner we provide local market expertise and leadership combined with access to a national and global network of tenants and best practices. Our goal is to elevate property demand to increase asset value and enhance net income while providing excellent service and reducing operating expenses – all while maintaining a high level of tenant satisfaction.
NAI Wheeler 409 899 3300 info@naiwheeler.com naiwheeler.com 17
We are owners, and we take everything personally...
450 Bowie Street
9667 Highway 69 South
1555 Highway 96
1675 Texla Road
296 296Pearl PearlStreet Street
4095 Dowlen Road
495 South 4th Street
2115 Calder Avenue
1205 Franklin Street
1990 1990Calder CalderAvenue Avenue
290 North 10th Street
425 North 4th Street
6120 College Street
2305 North Street
1575 1575S.S.23rd 23rdStreet Street
7395 Highway 105
2501 Main
1530 West Highway 327
195 IH-10 North
Hwy. Hwy.8787and andHwy. Hwy.6262
Locally owned and operated. Our professionals are deeply rooted in our community and provide uncommon insight as a result of long standing relationships. Whether you’re an owner, tenant, developer or investor, your local market leader and single point of access to a world of real estate solutions is NAI Wheeler. 18
Especially Your Business!
2305 2305North NorthStreet Street
156 S. Main
Your Listing Here!
Highway Highway421 421and andHighway Highway6969
Highway 69 and Wheeler Rd
4445 Westpark Ave.
4385 Cardinal Drive
5220 Eastex
706 Magnolia Street.
447 Orleans Street
5610 Eastex Freeway
470 Orleans
1430 Ashley
1310 Pennsylvania Avenue
90 Interstate 10 North
4180 Delaware
2456 & 2462 Calder Av
naiwheeler.com | 409 899 3300
Catering
Thank You
as a for A Closed Business Deal An Interview with Chef Chuck Harris, by Daryl Fant
SET THE TABLE Catering can be a way to get people to a meeting on time, a way to let staff know you appreciate all the overtime they’ve been working, or a way to celebrate another year in business. Today we’re looking at catering as a thank-you for closed business deals. Chuck Harris of Chuck’s Catering and Special Events helps his clients deliver the right message. Today he’s taken some time to talk with us about using catering as an effective business tool
Q.
Chuck, food plays a lot of roles in our lives. What are some guidelines for when to use food as a thank you?
A.
Big deals call for a celebration. This is especially true if you would like to work together again in the future. Putting together a big project and seeing it through can be tedious at best. At worst, it can become confrontational. “I've learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” ~ Maya Angelou Providing or sharing a thank-you meal can leave them with a great feeling, even after some hiccups during negotiating the deal itself. Providing a meal shows your appreciation, and we all want to be appreciated. The tradition of hosting a meal to wrap up a big deal gives you a chance to put the tedium and animosity of the deal behind you completely. Breaking bread lets both parties blow off steam, “setting the table” for future deals.
20
Q.
What is the ideal setting for a “Thank-you for closed business” meal?
A.
In most cases you want privacy. For commercial real estate deals, you often already have the most appropriate location. If you’ve just closed the deal on a nice commercial property, it can be the ideal setting. It doesn’t have to be ready for move in. With a little time and budget your caterer can work miracles. Using the building you just sold or leased, can really make a big impact. After all, this building brought you together. If the property is not an ideal location for a catered meal, you can use their office (putting them in the comfortable position of being on their “home turf”), your office, or a private event facility. You can also use your home, which can be a tool to welcome the client further into your life by letting down boundaries. There will be occasions when you want to waive privacy. Maybe you want to “be seen” wining and dining a well known client after a closed deal. Sometimes this can generate the right buzz and attract your next big client. In this case, you’ll want a semi-private room at an upscale restaurant or private club. Setting, in business as much as in film and literature, can do a lot of the work for you. Think about the statement you’re trying to make. Let your caterer know and they will help you choose the right location.
Q.
If you’ve just closed a BIG deal, what should be on the menu?
A.
In Southeast Texas, many caterers do an excellent job with Cajun, Mexican food, and barbecue – Chuck’s Catering included. These can be extremely appropriate if your client is from out of market. If they’re based out of Chicago or Canada or NYC, they’ll love any of these options – and brag about them when they get back home. If your client is local, you’ll want to go with something they don’t get here regularly. Maine Lobster and Dover sole can be flown in just for your event by your caterer. Kobe beef makes an impact. One sure to please option is to use the finest local ingredients prepared different waysjumbo Gulf of Mexico shrimp, blue crab, wild boar, and prime Texas beef. Your caterer can set up high end tasting stations or have them passed among your guests. Again, who is your audience and what message are you trying to send? Talk with your caterer and they can help you with the right menu – and work with your budget. Sometimes even a nice sized deal doesn’t mean that “money is no object”. Your caterer will get you the right menu while keeping you within budget.
2. Has the deal been super time consuming, resulting in lots of late nights for your client? Arrange for your caterer to provide a special in home meal for your client and their spouse or family. Not only will your client be impressed, you’ll get their spouse’s stamp of approval. 3. Put your listening skills to the test. Has your client mentioned a passion for hunting? Have your caterer create a wild game dinner. Did they share special memories of a trip to France? Have your caterer create an authentic “One night in Paris” experience. Showing that you listened, and catered to their preferences, will make an impact.
Q.
Chuck, I think you’ve given us a great deal to digest. Any final thoughts for our readers?
A.
More and more, Southeast Texas will be a melting pot. We have people buying commercial property from many different states, countries, and backgrounds. If you think food restrictions may be an issue, let your caterer know and they will plan your evening accordingly – some clients won’t want pork, If one of our readers is trying to move from alcohol, or will have other restrictions. If you’re not sure, “thank-you for the opportunity to handle this your caterer can play it safe. If your caterer project” to “I really want to handle all of your knows in advance, they can create a wonderful experiprojects” what are some ideas for making a bigger ence for anyone. If you are serving alcohol, consider impact? providing a car service to get everyone home. Sometimes it’s the “extra step” that makes the most impact. Spend a little time with your caterer and they will set you up for success. 1. Consider a wine dinner with multiple Are you about to close a big deal? Talk to Chuck small courses. Your caterer can present each wine and Harris about putting together a “Thank-you for food pairing and explain why they were matched. At closed business” meal to remember. Chucks.Catering@Gmail.com the end of the night, surprise your client with a mixed Chucks-Catering.com case of the wines used in the meal. Each time they Phone: 409.553.4311 open one, they’ll be reminded of the experience. To Advertise Call Daryl Fant 512.567.8068
Q.
A.
Southeast Texas Commercial Real Estate Tips:
Manage Your Utility Costs
h we spent some time with Robert Currie, owner of Innovative Air Solutions, and bout ways commercial property owners and managers can lower utility costs. Each month, we’ll work with local experts to bring you some tips on how to make your properties more valuable. filterCurrie, changes on aof monthly basis. thank-you for taking the time to time routine This month we spent some with Robert owner Innovative Air Solutions, and Pleated filters are better than fiberglass us. In Southeast Texas we see talked about ways commercial property owners and managers can lower utility costs. filters. Using a pleated filter, you can g periods of brutal heat, but we often lower your operating costs. A clean some pretty rough cold snaps. Q system have to work as hard and routine filter changes on a monthly basis. our number one thank-you piece of advice Robert, for taking the time doesn’t to less filters to operate. Cleanthan fiberglass Pleated are better g controltalk of heating cooling Texaswill with us.and In Southeast wecost see noticeably systems operate at aahigher Using pleated filter, you can both long periods of brutal heat, but we will alsofilters. "Filters are costs. A clean oftensystem. lower your operating also see some pretty rough coldcapacity snaps. than a dirty life of the system" an old adage systemisdoesn’t have toinwork as hard and on is the number onenumber thing you What is your one piecethe of advice thecooling heating and will AC industry that stillless has to operate. Clean cost noticeably bring down utilitycontrol costs on for taking of heating and merit today. A clean system systems willcan alsoprovide operate at a higher mercialcosts? properties. This is a many additional capacity years of than service withsystem. "Filters are a dirty cost that pays you back A repair costs. you’ve been is hitan old adage in the Iflife of theever system" Most building ownersiswill Insulation the realize number one fewer thing you withonthe cost of the replacing a big heating andcommerAC industry that still has nt monthly savings that canenergy do to bring down utility costs cialisunit, at today. the same time,system you can provide merit A clean ecades,your potentially savingproperties. thoucommercial This a or several already know themany valueadditional of extending theof service with years dollars.one-time Quality insulation cost that will pays you back life realize of your current system. fewer repair costs. If you’ve ever been hit rate of greatly. heat flowing the owners will Most into building with the cost of replacing a big commerduring the summermonthly months.energy It significant savings that Robert, have anyorfinal thoughts unit, several at the same time, you lower the rate of heat to lastflow for decades, potentially saving thou-do youcial on how property canof extending the already knowowners the value de during the winter months. If insulation sands of dollars. Quality will commercial manage conditioning life of and yourair current system. know ifslow youthe have theofinsulation rate heat flowing into the their heating costs?It , bring in a professional to summer give building during the months. Q Robert, do you have any final thoughts e advice.will also lower the flow rate of heat to Maintenance isonthe final piece of the how commercial property owners can the outside during the winter months. If I’m a business owner I air conditioning manage their myself, heatingso and another action you don’tcommercial know if you have the puzzle. insulation understand costs?to keep costs low. ownersyou canneed, take to bring bring in down a professional to give the desire Often, we are tempted to manage costs sts? you some advice. A to improve our bottom line. If you’re Maintenance is thegoing final piece of the Q to hold on to a commercial over puzzle. I’m property a business owner myself, so I roperty owners spend a commercial What isdon’t another action time,down regular maintenance your AC can understandofthe desire to keep costs low. e thinking aboutowners air filters, property canbut take to bring pay off tremendously. reliable systemto manage costs Often,Awe are tempted an easyutility way to realize addicosts? that keeps you and your tenants happy line. If you’re going to improve our bottom vings on heating and cooling. A year after with to hold on maintenance. to a commercial property over so protectMost air quality forowners your don’t spend property a year starts One of problems time, regular building maintenance of your AC can nd extend thetime life thinking of your AC lot of about air filters, butthe biggest leaks from the airA reliable system pay off tremendously. ndoor air quality can start with they are an easy way to realizeowners addi- face is water that keeps you and your tenants happy tional savings on heating and cooling. year after year starts with maintenance. Filters also protect air quality for your One of the biggest problems building tenants and extend the life of your AC owners face is water leaks from the air system. Indoor air quality can start with 22
conditioning system. Water leaks can be nasty and can damage ceiling tiles, sheetrock ceilings, floors, and your tenants ability to do business. Water leaks can also factor into a tenant’s decision to renew or to leave for a property they perceive as better maintained. In high humidity conditions, (which Southeast Texas is famous for), your system can generate a gallon of water per ton per hour. In other words a 5 ton system can fill a 5 gallon bucket with water in an hour. Water leaks are almost always preventable. In this case, an ounce of prevention really does offer a gallon of cure. Having the system serviced prior to the summer months could save hundreds in repair costs annually and much, much more in building damage and tenant conditioning system. Water leaks can be turnover. nasty and can damage ceiling tiles, Q floors, and your tenThank-you sheetrock Robert. Anyceilings, final thoughts ants ability to do business. Water leaks for our readers? can also factor into a tenant’s decision to A renewwith or tocommercial leave for a property We love working prop- they perceive as better maintained. erty owners and managers. They’re pas- In high conditions, (which sionate abouthumidity maximizing the value of Southeast Texas famous for), your system can their properties, andiswe’re passionate of water about helpinggenerate them. If awegallon can assist youper ton per hour.love In other words a 5 ton in any way, we’d the opportunity to system can 5 gallon come out andfilltoahear how bucket we canwith help.water in an hour. Water leaks are almost always preventable. In this case, an ounce of prevention really does offer a gallon of cure. For moreHaving information you prior toAre the system serviced the you an expert in your field? Doinyou have tips that can help months could can visit summer our website at save hundreds repair costs annually and much, much our readers? If so give us a call, www.i-airsolutions.com or more in building damage and tenantwe would love to have you turnover. feel free to call our office at thoughts share Thank-you Robert. Any final for your advice here! our readers? We love working with com(409) 233-7776. mercial property owners and managers. Daryl Fant, Publisher They’re passionate about maximizing the Southeast Texas Commercial Real Estate value of their properties, and we’re (512) pas- 567-8068 sionate about helping them. If we can SETXCommercialRealEstate@gmail.com assist you in any way, we’d love the 23
Beaumont Historical Properties Be part of downtown Beaumont's rebirth!
For historic Beaumont properties call Jarrod or Tom: (409) 838-3425 EM Jarrod@JJFProperties.com